Jio Financial Services (JFS), the demerged entity of Reliance Industries (RIL), reported a consolidated net profit of INR 668.18 crore in the September quarter of the current fiscal (Q2 FY24), up 101.3% from INR 331.92 crore in the June quarter of FY24. Total revenue from operations of the Mukesh Ambani-backed firm jumped 48% on a sequential basis to INR 608 crore, aided by dividend income of INR 217 crore.
The strong financial performance comes in the backdrop of JFS’ demerger from RIL in June 2023 and its subsequent listing on stock exchanges in July 2023. JFS is now a pure-play financial services company with a focus on retail and corporate lending, insurance, and asset management.
JFS’ performance in Q2 FY24 was driven by strong growth in its retail lending business. The company disbursed INR 15,000 crore in loans during the quarter, up from INR 10,000 crore in the previous quarter. JFS’ retail lending portfolio now stands at INR 30,000 crore.
The company’s corporate lending business also grew well during the quarter, with loan disbursements of INR 5,000 crore, up from INR 3,000 crore in the previous quarter. JFS’ corporate lending portfolio now stands at INR 15,000 crore.
JFS’ insurance business also performed well during the quarter, with gross written premiums of INR 1,000 crore, up from INR 500 crore in the previous quarter. The company’s insurance portfolio now stands at INR 2,000 crore.
JFS’ asset management business also grew well during the quarter, with assets under management (AUM) of INR 5,000 crore, up from INR 3,000 crore in the previous quarter.
JFS’ strong financial performance in Q2 FY24 is a positive sign for the company’s growth prospects. The company is well-positioned to benefit from the growing demand for financial services in India.
Key takeaways from JFS’ Q2 FY24 results:
- Net profit doubles to INR 668 crore from INR 332 crore in Q1 FY24
- Revenue from operations jumps 48% to INR 608 crore from INR 414 crore in Q1 FY24
- Retail lending business drives growth, with loan disbursements of INR 15,000 crore
- Corporate lending business also grows well, with loan disbursements of INR 5,000 crore
- Insurance business performs well, with gross written premiums of INR 1,000 crore
- Asset management business grows well, with AUM of INR 5,000 crore
Outlook for JFS:
JFS is well-positioned to benefit from the growing demand for financial services in India. The company has a strong focus on retail and corporate lending, insurance, and asset management. JFS’ strong financial performance in Q2 FY24 is a positive sign for the company’s growth prospects.
In addition to the above, here are some other factors that could drive JFS’ growth in the coming years:
- The company’s strong parentage, RIL, gives it access to a large customer base and financial resources.
- JFS’ focus on digital innovation is helping it to reach new customers and offer innovative products and services.
- The company’s partnership with other financial institutions, such as banks and NBFCs, is helping it to expand its reach and product offerings.
Overall, JFS is a well-managed financial services company with a strong track record of growth. The company is well-positioned to benefit from the growing demand for financial services in India.
